Online Music Licences (OML) are aimed at companies providing online services (digital downloads, streaming and webcasting) to the UK public, which generate more than £200,000 in annual revenue.
There are two licences that make up the OML scheme: the Music Download Licence and the Music Streaming Licence.
What do we charge a customer for the use of your music?
Music Download Licence
For music services licensed under the OML Music Download Licence, royalty rates are eight percent of gross revenue subject to a minimum fee per track depending on how many tracks are offered for download as a ‘bundle’ of tracks.
Music Streaming Licence
The Music Streaming Licence is currently under review. While this process takes place, the current OML on-demand and webcasting rates and minima will continue to apply.
How are royalties calculated?
- Permanent Download services – 75 percent to MCPS and 25 percent to PRS
- On demand streaming services – 50 percent MCPS and 50 percent PRS
- Webcasting services – 25 percent to MCPS and 75 percent to PRS
Do we pay you for each track used?
We will pay you for a track as long as we are sent the required information from the digital music supplier and we can automatically match it to information stored in our database. For download stores, approximately 90 percent of royalties related to downloads are paid out. A high proportion of the 90 percent is achieved through automatic matching. The remaining downloads are manually matched when it is cost effective to do so.
For companies that generate less money ( for example, through the LOML scheme) we pool all collected revenue and distribute it according to our data. This minimises costs and maximises the money that we pay to you.
Will you receive mechanical royalties for downloads if your music is registered late such as after it’s been downloaded, streamed or web-cast?
Music needs to have been registered by the end of the quarter in which the download, stream or web-cast took place to ensure a royalty payment.
What’s the commission rate on the royalties collected?
How often should you expect to be paid?
Royalties are paid in accordance to the schedule below:
The top row shows the month the performance took place. The second row shows the target distribution payment month. Money collected from companies operating under the LOML scheme is paid in December of each year.
What do the OMLs include?
- Permanent downloads
- On-demand streaming and limited downloads
- Premium and interactive webcasting
- Pure webcasting
- ‘Promo’ music videos
- Live concert performances
- Combination of a musical work with images relating to the performer or composer of the work
- Use of a musical work with an interview with an artist, composer, producer or other person involved in the creation of music, where the work used is associated with the interviewee
What do the licences exclude?
- Moral and graphic rights
- Unauthorised adaptations and arrangements
- Uses of music that are prejudicial to the composer, artist or relevant copyright owners
- Parodies, burlesques and dramatico-musical works
- Synchronising music with images
- Advertising and sponsorships
- Mobile ringtones
- Podcasting and simulcasting
- Sound recording rights
Need more help?
Contact firstname.lastname@example.org or email@example.com for further information on online services offering music.